KUWAIT: Gulf Bank Ok.S.C.P. (“Bank”) introduced its monetary outcomes for the primary quarter ending 31 March 2022. The financial institution reported a web revenue of KD 15 million, a rise of KD 3.1 million or 26 p.c in comparison with 2021 first quarter web revenue of KD 12 million. Subsequently, the financial institution’s return on property improved from 0.8 p.c within the first quarter of 2021 to 0.9 p.c in first quarter of 2022 and return on fairness grew from 7.6 p.c to 9.2 p.c. Gulf Bank recorded an working earnings of KD 41.5 million for the primary quarter 2022, and an working revenue earlier than provisions of KD 21.7 million for a similar interval.
The improve within the web revenue was primarily pushed by a 4 p.c or KD 0.4 million improve in non-interest earnings, a decline of (3 p.c) or KD 0.7 million in working expense, and a decline of 30 p.c or KD 2.6 million in complete provisions. As for asset high quality, the non-performing loans (NPL) ratio stood at 1.0 p.c as of 31 March 2022, decrease than the prior yr stage of 1.5 p.c. Additionally, the financial institution continues to have important non-performing loans protection ratio of 548 p.c together with complete provisions and collaterals.
Total credit score provisions as of 31 March 2022 reached KD 296 million whereas IFRS 9 accounting necessities (ie, ECL or anticipated credit score losses) have been KD 180 million. As a outcome, the financial institution has very wholesome extra provisioning stage of KD 116 million, above and past what’s required by the IFRS9 accounting necessities. Compared to first quarter 2021, complete property elevated by 4 p.c to KD 6.5 billion, gross loans and advances to prospects climbed by 7 p.c to KD 4.8 billion, and shareholders’ fairness elevated by 4 p.c to succeed in KD 662.2 million. Customer deposits reached KD 4.3 billion, a rise of two p.c in comparison with the prior yr.
The financial institution’s regulatory capital ratios remained robust because the Tier 1 ratio of 14.1 p.c was 3.6 p.c above the regulatory minimal of 10.5 p.c and the Capital Adequacy Ratio (CAR) of 16.3 p.c was 3.8 p.c above the regulatory minimal of 12.5 p.c. Worth noting that the capital ratios regulatory minimal has been partially restored compared to 2021 and shall be in place through the yr 2022 as instructed by the Central Bank of Kuwait.
Commenting on the outcomes, Jassim Mustafa Boodai, Gulf Bank’s Chairman mentioned: “Building on the positive momentum generated last year, I am pleased to announce that Gulf Bank has started 2022 strong, with an increase of 26 percent in net profit during the first quarter compared to the same period last year. Our asset quality profile and solid balance sheet fundamentals positions us very well to achieve our strategic aspirations. We continue to enjoy a strong financial position that enables us to deliver sustainable returns for our shareholders while supporting the future growth of the Bank.” Boodai added.
Boodai concluded his remarks by stating: “On behalf of the Board of Directors, I would like to thank our shareholders for their ongoing trust, and our employees for their commitment and dedication. I would also like to thank the Central Bank of Kuwait for their continuous support. Last but not least, I want to thank our clients for their loyalty, and reiterate our commitment to offering them the best banking experiences.”
Gulf Bank continues to be nicely acknowledged by way of its creditworthiness and monetary power internationally. During the primary quarter of the yr, Fitch Ratings has upgraded Gulf Bank’s Viability Rating to ‘bbb-‘ from ‘bb+’ and affirmed the financial institution’s Long-Term Issuer Default Rating at ‘A’ with a Stable Outlook.
Commenting on Fitch’s credit standing announcement, Tony Daher, Gulf Bank’s Chief Executive Officer mentioned: “The upgrade of Gulf Bank’s Viability Rating and the affirmation of its Long-term Issuer Default Rating at ‘A’ with ‘Stable’ outlook by Fitch Ratings is a testament on the Bank’s leading market position strong balance sheet, and earnings momentum, both of which supported the implementation of our strategy that is based on domestic organic growth and digital transformation.”
In addition to Fitch Ratings’ latest Viability Rating improve and affirmation of its Long-Term Issuer Default Rating at ‘A’ with a ‘Stable’ Outlook, Gulf Bank has a Long-term Foreign Currency Rating of ‘A+’ with a ‘Stable’ Outlook by Capital Intelligence Ratings and a Long-Term Deposits ranking of ‘A3’ with a ‘Stable’ Outlook by Moody’s Investor Services.
During the quarter, Gulf Bank continued attaining notable milestones of its 2025 digital transformation technique. Daher commented: “We continue to support the momentum of this dynamic transformation, delivering a strong financial performance while making significant progress towards our vision of becoming the Bank of the Future.” Daher continued: “As part of our ongoing digital transformation journey, we are proud to announce that we have successfully launched our new mobile application that provides fast, easy and safe customer experience. The new app features a friendly interface and new features such as ‘Pay link’ with a bill split option. In addition to launching phase I of our upgraded contact center towards the end of 2021, we aim to move forward with completing Phase II of the upgrade during this year.”
In recognition of its function to ship seamless, safe, and handy funds, Gulf Bank was awarded with “Most Rewarding Prepaid Card” by Mastercard for its Mastercard “MOUJ” Cashback Prepaid Card through the first quarter of 2022. The Bank had launched the “MOUJ” Cashback Prepaid Card in partnership with Mastercard again in 2021.